Mr Jonathan Scheele - Director for the Trans-European Network - Transport POLICY ON THE EXTENSION OF THE MAJOR TRANS-NATIONAL AXES Council Working Group on Land Transport EUROPEAN COMMISSION

| 2 Transeuropean Networks Energy & Transport THE PACKAGE OF 5 MARCH COMMUNICATION concerning the progress of exploratory talks regarding cooperation in the field of transport with the neighbouring countries. RECOMMENDATION FROM THE COMMISSION TO THE COUNCIL in order to authorise the Commission to open negotiations on behalf of the European Community with Albania, Bosnia & Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Montenegro and Serbia as well as Kosovo (under UNSCR 1244/99) on a treaty establishing a Transport Community

| 3 Transeuropean Networks Energy & Transport TENs and the neighbouring regions…. A well functioning transport system connecting the (EU) and the neighbouring countries is essential for sustainable economic growth and the wellbeing of all citizens. EU’s external policy aims, amongst others to establish common rules based upon the Union’s policies, such as the internal market principles and rules, in the neighbouring countries and other main trade partners.. In the transport sector, the aim is to ensure that legislation, standards and technical specifications of our main trade partners are compatible with those of the EU …are in our mutual interest

| 4 Transeuropean Networks Energy & Transport POLICY DEVELOPMENT PROCESS High Level Group chaired by former EC vice- president Loyola de Palacio Commission Communication on the way forward in January 2007 Council Conclusions in June 2007

| 5 Transeuropean Networks Energy & Transport The issues…. Rapidly growing East-West traffic volumes. Long delays at the border crossing points. Non-synchronised investment planning. …and the proposed solutions » Focus cooperation on 5 major trans- national axes connecting the EU with its neighbours » Complement infrastructure investments with a package of “soft” measures » Strengthen the coordination frameworks

| 6 Transeuropean Networks Energy & Transport Strong support to the Commission's approach. The usefulness of the axis approach as the basis for cooperation between the EU and the neighbouring countries;. The need to look beyond infrastructure measures and to bring transport corridor development and overall policy discussion closer together;. The importance of a strong and binding coordination framework that could take the form of a more binding MoU or a treaty;. The need to put in place the steering functions of the axes in line with the Commission’s proposal, building on the existing regional structures and technical secretariats.

| 7 Transeuropean Networks Energy & Transport ADJUSTMENT TO THE APPROACH (I). Cooperation with Switzerland to be continued in the existing bilateral structures. Central Asian states to be now involved in the axis approach through their participation to TRACECA. Not to include aviation anymore due to upcoming wider Common Aviation Area by 2010

| 8 Transeuropean Networks Energy & Transport ADJUSTMENT TO THE APPROACH (II). Continue cooperation under the specific GALILEO framework. Support to the development of the major axes to African networks is already covered through the EU-Africa partnership for Infrastructure

| 9 Transeuropean Networks Energy & Transport ADJUSTMENT TO THE APPROACH (III) Splitting the South Eastern Axis into 3 areas of cooperation. For Western Balkans: focus on the South East Europe Core Regional Transport Network. Due to Turkey’s geostrategic position to split – without changing the definition of the axis – in 2 branches: » The connection from Turkey to Caucasus through the TRACECA framework » The branch to Egypt under the Euro-Mediterranean structures to connect the South Western axis

| 10 Transeuropean Networks Energy & Transport NEXT STEPS AND TOPICS FOR DISCUSSIONS. Firm commitment of the neighbouring countries to the form of strengthened cooperation should be sought.. Agreement with the existing regional structures on new tasks ensuring effective monitoring of the Axes should be reached.. Creation or completion of regional structures for the Axes where such do not currently exist should be agreed upon.. A second progress report on the exploratory talks will be tabled in September 2008

| 11 Transeuropean Networks Energy & Transport ALREADY A SUCCESS-STORY With the Western Balkans, the exploratory talks lead to an ambitious proposal Which continues the Monnet method of building Europe step by step through concrete projects: To establish a Transport Community with the Western Balkans

| 12 Transeuropean Networks Energy & Transport WHY A TRANSPORT COMMUNITY WITH THE WESTERN BALKANS?. To support in the transport sector, the clear European perspective of the Western Balkans as recently confirmed in the Communication: Western Balkans: Enhancing the European perspective. To strengthen regional cooperation within the Western Balkans as a key factor for political stability, security, economic prosperity and social development. To ensure a full benefit from the accession framework for the Western Balkans through speeding up the alignment of national legislation with the Community acquis on transport and other relevant areas.

| 13 Transeuropean Networks Energy & Transport THE FUTURE TREATY BUILDS ON EXISTING COOPERATION. the Memorandum of Understanding on the development of the South East Europe Core Regional Transport Network of 11 June the Addendum for a South East European Railway Transport Area of 4 December the existing treaty for the Energy Community and for the European Common Aviation Area.

| 14 Transeuropean Networks Energy & Transport PURPOSE OF THE TRANSPORT COMMUNITY to work gradually towards an integrated market for all transport modes (except aviation) in the Western Balkans Region, and for the alignment of relevant legislation with the Community acquis

| 15 Transeuropean Networks Energy & Transport OBJECTIVES FOR THE TRANSPORT COMMUNITY. To establish gradually an integrated market for land, inland waterways and maritime transport systems and services closely linked with the relevant internal transport market of the European Union.. To create a stable regulatory and market framework capable of attracting investment in road, rail, inland waterway, port and airport infrastructure and traffic management systems. To increase efficiency in the transport modes and contribute to a more sustainable modal split.. To promote a balanced development of transport with social progress and respect of environment.

| 16 Transeuropean Networks Energy & Transport INFRASTRUCTURE. Further development of the South East Europe Core Transport Network as defined in the MoU according to the Community Guidelines on the Development of the Trans-European Transport Network (TEN-T). Taking into account where relevant the environmental acquis and the continuation of the development of the approximation with the procurement acquis. Development of efficient traffic management systems at regional level, including efficient regional development of Air Traffic Management infrastructure

| 17 Transeuropean Networks Energy & Transport SCOPE OF THE TREATY FOR TRANSPORT MODES Stepwise approach in acquis alignment and enforcement. Internal market rules. Technical standards. Interoperability. Safety. Security. Environment. Social law. Procurement rules

| 18 Transeuropean Networks Energy & Transport BORDER CROSSING FACILITATION. “One-stop” offices through shared facilities.. Simplification and harmonisation of trade and transport related documentation in line with the EU practice.. Implementation of the relevant international Conventions and agreements as well as their effective enforcement.

| 19 Transeuropean Networks Energy & Transport INSTITUTIONAL ARRANGMENTS. Ministerial Council to take strategic decisions. Regional Committee to follow the implementation of the Core Regional Transport Network and all relevant measures at technical level. Joint Committees responsible for the proper implementation per transport mode. Social Forum to consider the social impacts of the transport market reform). Permanent Secretariat

| 20 Transeuropean Networks Energy & Transport NEXT STEPS. COUNCIL AGREEMENT ON NEGOTIATING DIRECTIVES IN JUNE OPENING NEGOTIATIONS END OF JUNE SIGNING OF THE TREATY IN 2009